GCSE AQA Business Concepts Overview

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Business

An organisation that provides goods or services to customers in exchange for money.

Entrepreneur

A person who takes on the financial risk of starting and managing a new business.

Goods

Physical items that are produced and sold to customers.

Services

Non-physical, intangible products provided to consumers.

Needs

Essential items required for survival, such as food and water.

Wants

Non-essential items that people desire to improve their quality of life.

Customer

A person or business that buys goods or services.

Consumer

The end user of a product or service.

Revenue

The income a business earns from selling goods or services.

Profit

The money left after all costs have been paid from revenue.

Loss

When a business's costs are greater than its revenue.

Market

Where buyers and sellers interact to exchange goods and services.

Business Plan

A document that outlines the objectives, strategies, and financial forecasts of a business.

Stakeholder

Anyone affected by or with an interest in a business (e.g., employees, customers, owners).

Sole Trader

A business owned and run by one person.

Partnership

A business owned by two or more people who share profits and responsibilities.

Limited Liability

Owners are only responsible for business debts up to the amount they invested.

Unlimited Liability

Owners are personally responsible for all business debts.

Private Limited Company (Ltd)

A company owned by shareholders with limited liability; shares are not publicly traded.

Franchise

A business model where one business licenses the right to sell its products or use its brand.

Franchisee

The person or business that buys the right to operate a franchise.

Franchisor

The business that gives the franchisee the right to sell its product or service.

Marketing

The process of promoting, selling, and distributing a product or service.

Market Research

The process of gathering information about customers, competitors, and market trends.

Technology

The use of tools and systems to help businesses operate more efficiently.

Digital Communication

The transmission of information electronically, e.g., emails, social media.

Ethical Considerations

Deciding what is morally right or wrong in business decisions.

Environmental Considerations

Assessing the impact a business has on the natural environment.

Sustainability

Meeting current needs without compromising future generations.

Pressure Groups

Organisations that try to influence business decisions for social or environmental reasons.

Legislation

Laws that businesses must comply with.

Minimum Wage

The lowest amount a business can legally pay an employee.

Discrimination

Unfair treatment of employees based on characteristics like race, gender or age.

Health and Safety

Laws and regulations to protect employees at work.

Consumer Protection

Laws that protect the rights of customers.

Economic Climate

The overall state of the economy and its impact on businesses.

Interest Rates

The cost of borrowing money or the return on savings.

Exchange Rates

The value of one currency compared to another.

Globalisation

The process of businesses operating and competing internationally.

Imports / Exports

Imports are goods brought into a country; exports are goods sold abroad.

Competition

Rivalry between businesses in the same market.

Brexit

The UK's exit from the EU, affecting trade and business regulation.

Inflation

The rate at which prices increase over time.

Unemployment

When people who are willing and able to work cannot find a job.

Taxation

The money businesses and individuals must pay to the government.

Supply Chain

The network of suppliers and logistics involved in getting a product to the customer.

Logistics

The detailed organisation of transporting goods and services.

Outsourcing

Hiring other firms to perform business tasks.

Trade-offs

Compromising one thing in order to gain something else.

Production

The process of creating goods and services.

Job Production

Producing one-off items individually.

Batch Production

Producing a set of identical products together.

Flow Production

Producing items in a continually moving process.

Efficiency

Producing goods and services with minimum waste.

Productivity

The output per worker over a period of time.

Lean Production

Production approach that aims to reduce waste.

Just in Time (JIT)

A stock control method where inventory is delivered only when needed.

Procurement

The process of sourcing and purchasing inputs.

Quality Control

Checking products at the end of the production process.

Quality Assurance

Ensuring quality at every stage of the production process.

Customer Service

Support provided to customers before, during and after purchase.

Sales Process

Steps involved in selling a product to a customer.

Good / Poor Customer Service

How well or poorly a business supports its customers.

After-sales Service

Service provided after a product is sold.

E-commerce

Buying and selling online.

Retailer

A business that sells directly to customers.

Wholesaler

A business that sells goods in bulk to retailers.

Stock Control

Managing the amount of stock held by a business.

Supplier

A business that provides goods or services to another business.

Lead Time

Time between placing an order and receiving it.

Buffer Stock

Extra stock kept in case of emergencies or delays.

Supply Chain Management

Overseeing all stages in the production and distribution of products.